Gold rides hard on the back of deadly fear and misfortune
As uncertainty grows over whether the virus outbreak will turn into a pandemic, so should demand for havens
The Chinese love gold. The precious metal has historically traded at a premium to global prices close to the lunar new year, a peak season for retail demand in China. This year, the world’s biggest gold consumer has been too busy battling a deadly coronavirus outbreak to keep with tradition.
However, this is more than offset by increased demand from global investors spurred by fears of the same virus.
The price of the gleaming stuff has gone on rising this month, adding to a rally of almost a fifth last year. Gold bugs aside, $1,560 an ounce might look pricey. But a lasting reversal requires a brighter economic outlook and moves to normalise global monetary policy...